Investment Linked Policies (ILP)
Asked on 27 May 2019
Hi, I have a AIA Family First Secure ILP which was started by mum under my name since June 2014 and I've been paying $150 ever since.
I've checked my current value of the policy and it's currently hovering just below $5k which means my breakeven point will be further in the future.
Should I instead get a term insurance to cover death and TDB and invest the remaining amount in something else? (assuming I only have $150 to spend every month). Keen to know any advice as I'm clueless about these.
Would be good if you are able to seat down with an advisor to look through your policy.
It depends on your ILP. Is it heavey on the protection side or is it heavy on the investment side. If it is higher on the protection side, you should be getting quite a good coverage with it if you have started the policy early.
If you are buying term and investing the difference, what are the instruments that you want to invest in? These are questions that you have to take into consideration.
I have an ILP too and it was done many years ago. It has quite a high coverage and I am still holding onto it. It is already 14 years old now. Policy value almost breakeven but I treat it as a protection policy and I won't be surrendering it any time near.